Clarity sought on Sars boss’s reinstatement

PARLIAMENT’S standing committee on finance said it had sent official letters to Sars commissioner Tom Moyane and Finance Minister Malusi Gigaba asking for a copy of a disciplinary inquiry report that cleared a senior Sars official.

Jonas Makwakwa, widely believed to be Moyane’s number two, was reinstated last week after serving a year’s suspension after the Financial Intelligence Centre (FIC) flagged several suspicious payments into his bank account and that of another Sars employee, Kelly-Anne Elskie.

“We have no evidence that Mr Makwakwa and Ms Elskie are guilty but we still believe that it is in the public interest that the report be released,” said committee chairman Yunus Carrim.

“Given the role Sars plays, it not only has to be, but be seen to be above reproach, and perceptions of irregularities by its senior officials have to be effectively addressed.”

The letters to Moyane and Gigaba were sent after consultation with Parliament’s legal services unit.

Carrim said given the diminishing public confidence in Sars, the revenue service had to take the public into its confidence.

“With the projected shortfall of R50.8 billion in revenue for this financial year, we need to bolster public confidence in Sars. The Sars statement that Mr Makwakwa is not guilty of the charges is terse and offers no justification for this decision.”

Makwakwa, chief officer: business and individual taxes, was suspended last year after the FIC submitted a report to Sars with serious allegations against him regarding how large amounts of money ended up in his bank account.

Sars then sought an outside legal opinion after Moyane decided to suspend Makwakwa pending an independent investigation.

International law firm, Hogan Lovells, was appointed to investigate. Its report recommended disciplinary action against Makwakwa. The law firm appointed advocate Terry Motau SC, to chair the hearing. Sars said Motau’s final report found Makwakwa not guilty.

“As a result, he will return to Sars to resume his position from November 1.” – ANA